Q24-7RQ - Horngren'S Financial And Managerial Accounting

Question

What is a responsibility center?

Step-by-Step Solution

Answer

Answer

 

The responsibility center refers to the section or unit of an organization responsible for specific tasks assigned to the same.

 

Step 1: Meaning of Organization

The term organization refers to the association of individuals and other bodies who agree to perform particular activities for the accomplishment of common goals specified by the management.

Step 2: Meaning of Responsibility Center

The term responsibility center refers to a unit of an entity or organization responsible for all the events, tasks, and activities associated with such a particular unit. Each responsibility center carries its separate tasks and goals.